Global Marketing

Management
A European Perspective

Global Segmentation,
Targeting and Positioning

Warren J. Keegan
Bodo B. Schlegelmilch
 Overview
Global Market Segmentation
criteria: geographic, demographic, psychographic,
behaviour, and benefit segmentation
Global Targeting
Selecting a Global Target Market Strategy
Global Product Positioning
High-Tech or High-Touch Positioning
Summary

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 Learning Objectives
To understand the objectives and usefulness of
global market segmentation
To know the approaches to global market
segmentation using different segmentation criteria to
define target groups
To learn different ways of positioning products in
global markets

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Global Market Segmentation

... is the process of dividing the world market

into distinct subsets of customers
that have similar needs
(eg country groups or individual interest groups).

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 Criteria for
Global Market Segmentation
Geographic segmentation
geographic subsets
Demographic segmentation
eg age, gender, income, occupation
Psychographic segmentation
Behaviour segmentation
Benefit segmentation

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 Psychographic Segmentation

... is based on attitudes, values and lifestyle

... is measured through extensive item batteries
which cover activities, interests and opinions
(AIO-studies)
lifestyle surveys, eg by
the Research Institute of Social Change (RISC)
the Centre de Communication Avancé (CCA) and
the Values and Life Styles (VALS) by SRI International

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 Psychographic Profiles of
Porsche’s American Customers
Category % of all owners Description
Top Guns 27% Driven and ambitious; care about power and control;
expect to be noticed
Old money; a car—even an expensive one—is just a car,
Elitists 24% not an extension of one’s personality
Ownership is what counts; a car is a trophy,
Proud Patrons 23%
a reward for working hard; being noticed doesn’t matter

Bon Vivants 17% Cosmopolitan jet setters and thrill seekers;

car heightens excitement
Car represents a form of escape;
Fantasists 9%
don’t care about impressing others;
may even feel guilty about owning car
Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24

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 Backer Spielvogel & Bates’
Global Scan (BSB Global Scan )

... encompasses 18 countries, mostly in the Triad

The researchers studied
consumer attitudes and values,
media viewership/readership,
buying patterns,
product use.
5 global psychographic segments represent 95% of
the adult populations in the countries surveyed.

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The Target Groups of
BSB’s Global Scan

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 D’arcy Massius Benton & Bowles’
Euroconsumer Study

... focuses on Europe

... identified four lifestyle groups:
The first two groups represent the elite,
the latter two mainstream European consumers.
 Successful idealists
 Affluent materialists
 Comfortable belongers
 Disaffected survivors
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Europanel’s Eurostyles

Source: adapted from Josef Mazanec, “Exporting Eurostyles to the USA,” International Journal of
Contemporary Hospitality Management, 5,4 (1993): p.4
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 Behaviour and Benefit
Segmentation
Behaviour segmentation
Focus on whether and how much people buy or use a product;
eg usage rates: heavy , medium, and light users, and nonusers
eg user status: potential users, nonusers, ex-users, regulars, first
timers, and users of competitors’ products
Benefit segmentation
Today, consumers basic needs are fulfilled. Therefore, consumers
seek additional value from purchase decisions;
eg cars: in addition to movement buyers seek personal safety,
image, superior engine power (speed) etc.

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Global Targeting

After markets have been segmented, targeting

aims at evaluating and comparing the indentified
segments in order to select one or more as
prospect(s) with the highest potential.

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 Criteria for Targeting
As in single-country targeting, the most important
criteria are:
Current size of the segment and anticipated
growth potential
Competitive intensity and potential competition
Compatibility with the company’s overall
objectives and the feasibility of successfully
reaching a designated target

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 Selecting a
Global Target Market Strategy
standardised global marketing
i.e. mass marketing, the same marketing mix for a
broad market of potential buyers; e.g. Revlon
concentrated global marketing
targeted at a single segment of the global market, e.g.
Winterhalter (German dishwashers for hotels)
differentiated global marketing
2 or more different segments; e.g. VW (cars for various
target groups: Porsche, Skoda, VW Golf etc.)

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 Global Product Positioning
is the location of a product in the mind of the
consumer
is partly controlled by the marketer (marketing
mix) and partly not!
is visualised by a “positioning map”
2 dimensions
or multidimensional (MDS)

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Positioning Map of American Fast-Food-
Restaurants in the Mind of Consumers

Source: adapted from James H.

Myers, Segmentation and
Positioning for Strategic Marketing
Decisions (American Marketing
Association, Chicago, 1996), S. 187

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 High-Tech Positioning
Positioning stragtegy for products which are
purchased on concrete product features; buyers
typically already possess or wish to acquire
considerable technical information
Suitable for
technical products, such as computers or chemicals,
special-interest products, such as sporting goods,
products that can be demonstrated easily.; eg polaroid
cameras
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 High-Touch Positioning

The emphasis lies more on the product’s image;

specialised information appears of minor
relevance
Suitable for
products that solve a common problem; e.g., soft drinks
global village products, such as cosmetics or fashion
products that use universal themes; e.g. „heroism“ in
Levis ads (jeans)

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 Summary
 Before a company expands to foreign markets it must
analyse the global environment.
 Global market segmentation aims at identifying
similarities and differences of potential customers.
 Global targeting: The market segments are evaluated
and compared and an appropriate targeting strategy is
developed.
 To reach the targeted market segment(s) a positioning
strategy must be chosen; in a global context high-tech
or high-touch positioning are promising.
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